Federal Reserve cuts rates by half a point and signals era of easing has begun

The Federal Reserve cut its benchmark interest rate by half a percentage point on Wednesday and signalled more reductions would follow, launching its first easing cycle since the onset of the pandemic.

The US central bank’s first cut in more than four years leaves the federal funds rate at a range of 4.75 per cent to 5 per cent. Michelle Bowman, a member of the Federal Open Market Committee, voted in favour of a quarter-point cut — the first Fed governor since 2005 to dissent from a rate decision.